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Estimating Direct Gains in Consumer Welfare in Telecommunications Sector

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  • Abhay Gupta

Abstract

This paper discusses the benefits of product and process innovation as well as deregulation in consumer telecommunication products markets. The twin trends of price reduction and new features have benefited consumers. These major changes have taken place alongside deregulation. Using the data from Organisation for Economic Co-operation and Development telecommunication reports, the paper provides estimates of gains in consumer welfare over the years. These direct gains are significant (hundreds of billions of dollars) and thus justify the public investment that goes into the telecommunication infrastructure improvement. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Abhay Gupta, 2013. "Estimating Direct Gains in Consumer Welfare in Telecommunications Sector," Journal of Consumer Policy, Springer, vol. 36(2), pages 119-138, June.
    • Handle: RePEc:kap:jcopol:v:36:y:2013:i:2:p:119-138
    DOI: 10.1007/s10603-013-9220-6
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    References listed on IDEAS

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    1. Dale W. Jorgenson & Khuong Vu, 2007. "Information Technology and the World Growth Resurgence," German Economic Review, Verein für Socialpolitik, vol. 8, pages 125-145, May.
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    3. Dale W. Jorgenson & Khuong Vu, 2007. "Information Technology and the World Growth Resurgence," German Economic Review, Verein für Socialpolitik, vol. 8(2), pages 125-145, May.
    4. Minjae Song, 2007. "Measuring consumerwelfareinthe CPU market: anapplication of the pure-characteristics demand model," RAND Journal of Economics, RAND Corporation, vol. 38(2), pages 429-446, June.
    5. Hee Lee, Duk & Hee Lee, Dong, 0. "Estimating consumer surplus in the mobile telecommunications market: The case of Korea," Telecommunications Policy, Elsevier, vol. 30(10-11), pages 605-621, November.
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